Breaking the 20% Down Payment Myth – First-Time Home buyers Can Start with Less
Michael LeeSr. Loan Officer
NMLS 1464242
Tel. (978) 314-8818
Email [email protected]
Many first-time home buyers believe they need a 20% down payment to purchase a home with a mortgage. While this idea is widespread, it’s often based on outdated misleading information found online. Even some Real Estate Agents may unintentionally provide wrong advice, not assuming that every buyer’s situation is unique thus limiting their perspective.
That’s why getting pre-approved is the most crucial first step in the home-buying journey; well before attending an open house. During the initial consultation, I will help address these aforementioned misconceptions. Many buyers are surprised to learn that their path to homeownership is more accessible than they believed.
For example: Federal Housing Administration (FHA) loans require a minimum down payment of just 3.5%. Conventional loans offer even lower minimums at 3% for first-time homebuyers and 5% for other primary home purchases.
This knowledge empowers buyers to create realistic financial plans and act sooner. Waiting to save 20% for a down payment often results in missed opportunities because home prices continue to rise which makes the process even more challenging.
As a Loan Originator, my job is to provide up-to-date, accurate information tailored to each buyer’s needs. Knowing the available options and choosing the best path can make all the difference. In fact, the average down payment for homebuyers is only 15%.
Home ownership may be closer than you think. Let’s plan your journey together!
